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Cash App is another popular peer-to-peer payment service - “like many others”, you may think. Well, unlike many other peer-to-peer apps, Cash App offers its own investing account, allowing you to buy and sell stocks.
If you’re looking to dip your toe in the murky waters of stocks, then Cash App Investing might just be for you. If that’s the case, then continue reading to learn about the pros and cons of the platform.
And since you're interested in investing and managing your money, you may need a solution for holding multiple currencies. Say hello to Wise! You can hold 56 currencies and convert at the real, mid-market rate.
|Table of Contents 📝|
When you invest in a stock, you’re simply buying a part of the company whose stock it is. This segment of partial ownership is called a “share”.
The reason you buy a share is in the hope that the stock’s value/price will increase, which will allow you to sell it for a higher price than you bought it. This will make you a profit.
Cash App’s investing account is an excellent choice for beginner investors. Buying and selling stocks can be done within seconds, without any scary graphs.
But, this being said, if you’re a more experienced investor, then Cash App might not be so great for you. Let’s take a look at the pros and cons of Cash App stocks.
|Cash App Investing Review|
✅ Cash App Investing’s standout qualities:
Its ease of use for beginners. It holds your hand from buy to sell, and makes trading and investing a walk in the park!
Once you’ve created your account you can immediately begin investing on Cash App for as little as $1. This is because Cash App allows for “fractional share” investing, meaning you don’t have to buy a whole share, but only a portion of it.¹ This makes it great for beginners, as your investment options aren’t limited by high share prices.
Similarly, Cash App currently offers approximately 1,000 stocks, giving you a wide range of choice for investments.²
❌ On the flip side, there are some drawbacks with Cash App, specifically for more experienced investors.
Firstly, the different types of things you can actually invest in are fairly limited. Cash App only allows investment in stocks and Exchange-Traded Funds (ETFs). This can make it limited for experienced investors looking for other types of investment opportunities.²
Similarly, you’re also limited with the types of accounts you can open. Cash App Investing only offers a taxable, standard brokerage account. Think again if you’re looking for Individual Retirement Accounts (IRAs) or joint accounts!
As well as this, you’re only able to open a Cash App investing account if you’re a US resident. You also need to be 18 years old or older and you need to provide some personal details such as your social security number and home address.³
If you’re looking to get a foot in the world of investing, then you might want to start investing with Cash App.
Once you’ve got an account, the first thing you’ll probably want to do is start buying stock on Cash App.
To buy stock on Cash App, all you need to do is:
- Open Cash App
- Click the “Investing” icon on the Cash App home screen
- Open the search bar and enter either the ticker symbol or company name
- Select the company
- Click “Buy”
- Either select a preset amount or click the three dots icon to enter your desired amount
- Complete the remaining steps for verification
- Confirm the purchase with your Touch ID or enter you PIN⁴
It’s important to remember that you can only buy stock on Cash App when the stock market is open. But you can schedule an investment or a sale 24/7.
|The US stock market is open from Monday to Friday, and its opening hours are:|
Additionally, Cash App also has another cool feature called “Auto-Invest”.
As the name suggests, Auto-Invest allows you to schedule recurring purchases of a stock, so that you don’t even have to think about it. If you’re looking to buy shares in small portions over a period of time, or wanting to consistently invest some of your salary, then Auto-Invest is a neat, easy way to do this.⁵
If you’re wondering how to sell stock on Cash App, then you’ll be glad to know it’s easy to do. Just like with buying stocks on Cash App, selling is a simple process.
To sell your stock, you’ll need to:
- Open Cash App
- Click the “Investing” icon on the Cash App home screen
- Scroll until you reach “My Portfolio”
- Click the company whose stock you wish to sell
- Click sell
- Select either a preset amount or click the three dots icon to enter your desired amount
- Confirm your sale with Touch ID or enter your PIN⁶
After you’ve confirmed your sale, your money can take up to 2 business days to appear in your Cash App balance.
One thing to note is that Cash App has selling limits.
If you attempt to sell 98% or more of your share, then you’ll be forced to either sell all of your share or choose a lower amount to sell. Similarly, Cash App has a minimum sale limit of $1.⁷
Like many of Cash App’s features, it is also free to open a Cash App Investing account. Even better - Cash App doesn’t charge commissions on share sales. That’s right - there are no Cash App stock fees! And, not only are there no commissions, there’s also no minimum balance to maintain the account.⁸ This makes Cash App stock trading very appealing.
One thing to keep in mind is that selling shares may come with tax implications. While Cash App may not charge fees, that doesn’t mean the government won’t. If that’s the case, Cash App will warn you of any taxes before you confirm the trade. If in any doubt, it’s best to contact a tax advisor.⁹
While Cash App is an excellent choice for beginner investors and day traders, it’s not the only option on the market.
If you’re struggling to decide which app is best for you, then check out the 11 best investment apps.
So, you’ve sold your share and made your profit - now what? Here’s an idea: If you like to travel or send money abroad on a regular basis, then you might be interested in transferring your money to Wise.
After signing up, you can transfer your money directly from your Cash App balance to Wise’s multi-currency account.
With Wise’s multi-currency account, not only can you hold and convert money in 56 different currencies, you can also send money to more than 70+ countries.
- Cash App - Investing house rules
- Cash App - Supported stocks
- Cash App - Opening an investment account
- Cash App - Buying stock
- Cash App - Auto Invest
- Cash App - Selling stock
- Cash App - Selling limits
- Cash App - Investing fees
- Cash App - Broker-Dealer disclosures
All sources checked on 03 June 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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